Pages

Friday, January 14, 2011

World Watch: [Russian Oil Production Hits Post-Soviet Record in 2010]

by Nelli Sharushkina, Energy Intelligence (EI)
Russia had a good year in 2010, with ... oil production rising by 2.2% to a record 10.145 million b/d, according to preliminary data issued this week. But the outlook for 2011 is uncertain. The energy ministry expects output to remain at 2010 levels, while oil companies are more vague, with one or two hinting that much will depend on Moscow's taxation policies. The increase in 2010 was driven largely by greenfield projects. The 255,000 b/d Vankor field was the main contributor to a 6.2% rise at state-controlled Rosneft, Russia's largest oil company, which produced an average of 2.26 million b/d. TNK-BP, the third largest, increased output by 2.5% to 1.45 million b/d, mainly because of new fields. Lukoil, the second biggest producer, which saw its Russian output drop 2.3% to 1.81 million b/d, has not ruled out a further decline, as it may redirect spending to strategic projects overseas and away from its traditional production base in Western Siberia. Surgutneftegas, whose output fell 0.1% to 1.196 million b/d, is targeting growth of 1.9% this year but has warned that drilling is not effective under the current tax regime.

(Thus, the forecast regarding the Russia's record oil production in 2010, has come true. -- See the related post, here. Energy Ministry’s CDU-TEK statistics unit data showed Russia pumped a total of 10.145 million b/d last year, a record since the collapse of the Soviet Union, up from 9.93 million b/d in 2009 and 9.78 million b/d in 2008 (total output including crude plus lease condensate; natural gas plant liquids; other liquids; etc). In the Soviet-era, Russian production peaked in 1987 at 11.48 million b/d. It is also worth noting that Russia is the world's largest crude oil producer, followed by Saudi Arabia---please see my post here. -- D.R.)